Investor buy back/financial options

[Jeremy Liesveld]

Hello all, I sold my home to help pay off my student loan debt in 2015 for 240k but continued to rent it. I have completed my debt free challenge and have a very healthy savings. Wanting to get back in the market and start buying rental property but the North Dallas Market is very hot. With that being said the investor/owner is wanting to sell my house back at 260k. This is a fair price as he will not have to pay realtors fees or go through the hassle of selling or re-renting as they are out of state. The appraisal is pending in a few days I’m guessing around 275-285k. The current owner of the home is not new to the game. He is willing to work with me on the back end so I can save capital for the next property. Thus, he suggested the sale price of the house be set high so the appraisal is high. Once the appraisal comes in we would the adjust the price 20% to avoid down a large down payment. 20% is around 60k therefore the loan amount purchase price would be 240k. I would owe him on the back end interest free 20k with loose timing terms unless I sell the house. Rent is going for around 1900-2150/mo for this type of house. My first quote for mortgage payments on this deal is right at 2k/month. Would it be worth it to proceed or just buy it outright at 260k with 52k+closing? Placing us around 1800/mo. We would like to move into another modest home(future rental) for better schools soon and buying it out right would definitely prolong our stay in a planned rental property. I have never heard of this being done and frankly astounded by his generosity. I’m sure this type of thing doesn’t happen very often. Any advise or tips would be great appreciated.